current gain of atronsistor is the ratio of the

Question : If the current ratio were 2:1, how the purchase of goods on credit will affect the current ratio?

Option 1: Decrease gross profit ratio

Option 2: Have no effect on the Current ratio

Option 3: Increase Current ratio

Option 4: Decrease the Current ratio

Question : The Current Ratio of a Company is 2:1. Redemption of Debentures would

Option 1: Increase current Ratio

Option 2: Decrease Current ratio

Option 3: Have no effect on current ratio

Option 4: Decrease gross profit ratio

Question : The Current Ratio of a Company is 2:1. Redemption of Debentures would

Option 1: Increase current Ratio

Option 2: Decrease Current ratio

Option 3: Have no effect on current ratio

Option 4: Decrease gross profit ratio

Question : Which of the following statements is not true?

Option 1: The current ratio establishes a relationship between Current Assets and Current Liabilities.

Option 2: Current Ratio $=\frac{\text { Current Assets }}{\text { Current Liabilities }}$

Option 3: It measures the ability of the firm to meet its current liabilities within 12 months from the date of the Balance Sheet or within the period of the operating cycle.

Option 4: The current Ratio of 1:1 is considered an ideal ratio